“specialist - corporate.ncabgroup.com · our journey 374 322 520 561 601 711 924 1 203 1 226 1...

“Specialist

in a globally

growing niche”

NCAB GROUP © | 5 October 2018


Agenda

1. NCAB in short

2. Our globally growing niche market

3. Focus on sustainability

4. Financials, strategy and goals

1. NCAB in short



45

markets

15

companies

18

factories

366

specialists

VISION

The Number 1 PCB Producer

wherever we are

MISSION

PCBs for demanding customers, on

time with zero defects and at the

lowest total cost

PCB Production Assembly End product

Why are printed circuit boards critical?

7%0,5-2%

100%

PRODUCTION PHASE

VA

LU

E THE RATIO OF THE PCB COST

TO THE PRODUCTION PHASE

THE COST OF A

FAULTY PCB


Our journey

374 322

520 561 601711

924

1 203 1 226

1 4001 460

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 q2 LTM

CAGR: 16%

Finland

Macedonia

Denmark

Norway

Russia

China

Spain

Germany

Poland

UK

France

USA

2004–2011

Italy

FROM TRADER…

1993–2003

...TO FULL SERVICE SUPPLIER…

2012–

… WITH WORLDWIDE PRESENCE

Sweden

Revenue development, LTMMSEK


1,650customers in

45 markets

worldwide

18main factories

predominantly

located in China

One-stop-shop for PCB needs

Purchasing power

Quality control, knowledge and support

Lower total cost for customers


Why our customers love us

Shorter time to market with NCAB


2. Our globally growing

niche market


European/US factories market share down

from 42% in 2000 to 9% in 2016

China8%

Rest of Asia50%

Europe and Americas

42%

China49%

Rest of Asia42%

Europe and Americas

9%

% of PCB production world wide

2000 2016

Why NCAB has a role to fill

% of PCB production world wide


Our attractive niche – HMLV

High-Mix Low-Volume

(HMLV)

High-Volume

MIX

Hig

h

(<U

SD

2,0

00 p

er

ord

er

line)

Lo

w

(>U

SD

2,0

00 p

er

ord

er

line)

VOLUMEHigh

(>50 sqm per order)

Low(<50 sqm per order)

> Higher product value

> Higher quality demand

> Less price pressure

> Harder to buy direct


Growth

60 63 65 67 68 71

2016 2017E 2018E 2019E 2020E 2021E

HMLV

~30%

High

volume

~70%

PCB market split (2016)

USD 60bn

Total PCB market

HMLV going through advanced traders 8-10 %


A market leading position worldwide

~165~160

~150

~125

~100

~40 ~40

REVENUE 2017 USD m


3. Focus on sustainability


Our sustainability

strategy


SATISFIED

UNFOCUSED

BORED PASSENGERS

ENGAGED

Dedicated employees

critical to NCAB’s success

Benchmark

NCAB

Employee engagement

C L A R I T Y

EN

ER

GY

56% 44%

Finalist within the

“Best Service

Companies” category


4. Financials, strategy

and goals


Revenue per quarter

376,1

415,8

0

50

100

150

200

250

300

350

400

450

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

MSEK

> Good growth and order

intake in most segments – we

are increasing our market

shares

> Revenue increased by 11%

in SEK, and 14% in USD

> Order intake increased by

14% in SEK, and by 16% in

USD

> Continued strong markets in

all regions


28%31%

30%

10%

29%

25%23% 23%

32%30%

27%

11%

Q1 2

015

Q2 2

015

Q3 2

015

Q4 2

015

Q1 2

016

Q2 2

016

Q3 2

016

Q4 2

016

Q1 2

017

Q2 2

017

Q3 2

017

Q4 2

017

2)

Stable quarterly incomeLow seasonality and customer concentration generating stable performance

24%

27%25% 24%

26% 25%24% 25% 26%

27%25%

23%

Q1 2

015

Q2 2

015

Q3 2

015

Q4 2

015

Q1 2

016

Q2 2

016

Q3 2

016

Q4 2

016

Q1 2

017

Q2 2

017

Q3 2

017

Q4 2

017

Quarterly revenue split1)

% of year total

Quarterly EBITDA split1)

% of year total

Note: 1) Figures are unaudited and refer to management accounts. 2) Accrual for bonuses during the year resulted in a cost catch up effect in December. Source: Company

information


Others~50%

Top 2:

~11%

Top 10:

~27%

Top 50:

~50%

SEK

1,400m

Low customer concentration% of revenue 2017


1 2031 226

1 400

1 460

27,4%

30,3% 30,2% 30,5%

2015 2016 2017 2018, q2 LTM

Revenue Gross margin

Continued top-line growth and stable gross margins


Profit per quarter, Q2 2018MSEK

> Adjusted EBITA on

stable levels, reached

32 MSEK

> Result affected by

growth initiatives, IPO

preparations and

headwinds in currency

34,2

32,0

8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

5

10

15

20

25

30

35

40

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

Adj. EBITA, Mkr Adj. EBITA margin, %


Our segments; NordicMSEK

> Mature market with low

growth

> We have a stable

development and moderate

growth

> High market share

> Focus on profitability

18%EBITA margin

99,6106,8

17,5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

20

40

60

80

100

120

140

160

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

Revenue EBITA margin, %


134,1

164,0

4,9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

20

40

60

80

100

120

140

160

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018


Our segments; EuropeMSEK

> High market growth

> Ambitious expansion

> Strong development in

Germany and in the UK

> Newest market Italy was

established in 2017

> Profitability affected by focus

on growth and recruitments

+22%Revenue growth


72,8 71,5

4,5%

0%

1%

2%

3%

4%

5%

6%

7%

8%

0

20

40

60

80

100

120

140

160

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018


Our segments; USAMSEK

> Transition from low-tech to

high-tech products will take

all 2018 before profitability

will be restored

> Positive trend of number of

new customers

-2%Revenue growth


69,6 73,5

9,9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

20

40

60

80

100

120

140

160

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

Revenue Adj. EBITA margin, %*

Our segments; EastMSEK

> Strong development in China

– stable performance and

tough comparables in Russia

> Looking for establishment in

new countries

+6%Revenue growth


Balance sheet KPIs

LTM June -18 June -17 2017

ROE, % 7.0 50.8 30.4

Net debt/Adj. EBITDA 0.6 1.2 1.1

Solvency, % 36.2 28.0 19.2

Net working capital, MSEK 153.8 142.0 115.3

0,6%Net debt/Adj.

EBITDA


Strategic plan supporting continued growth

2017 Future

Increase market

share in Europe,

USA and East

Consolidate

market

Expand

geographically

Ensure profitability

from existing

customers


Financial targets, medium-term

Average annual organic

revenue growth of

8%

Adjusted EBITA

margin of

8%

Net debt/adjusted

EBITDA less than

2x

Dividend expected to

correspond to at least

50% of net profit


Shareholder Pre IPO, % Aug 31, %

R12 Kapital 61,8% 23,1%

Norron funds - 7,2%

AP 4 - 7,2%

Hans Ståhl, CEO 8,0% 5,2%

Länsförsäkringar funds - 4,2%

AP 3 - 4,0%

Swedbank Robur - 3,9%

Cliens funds - 3,6%

Christian Salamon, Chariman (via Gogoy AB) 8,7% 3,3%

C Worldwide Asset Management - 3,0%

Lazard Asset Management - 2,9%

Vladimir Makarov, (Head of Russia) 3,7% 2,5%

Riksbankens Jubileumsfond - 2,4%

AMF Fonder - 2,1%

Anders Forsén, CFO 2,7% 2,0%

Others 15,1% 23,6%

Total 100% 100%


Ownership structure pre and post IPO

Q & A


“specialist - corporate.ncabgroup.com · our journey 374 322 520 561 601 711 924 1 203 1 226 1...

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